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Trader takes JP Morgan to the bank

Shares of JP Morgan are on pace to match their highest close since the start of May, and one trader is looking for more gains.

A trader bought 7,500 October 43 puts for $0.27 against open interest of 17,814 while selling 15,000 October 45 calls for the bid price of $0.06, according to optionMONSTER's systems. Open interest in the latter strike was just under 9,000 contracts, so it was a new position.

This could be a trader rolling up a short call position up and doubling its size, but it seems more likely that this is a new ratio spread . This would indicate that the trader sees the stock moving up to $45 but not beyond, as he or she would be effectively be short the stock at that point. (See our Education section)

JPM is up 2.45 percent today to $41.47 in afternoon trading. This matches the close from September 13, the highest since the start of May. Shares were down at a 2012 low below $31.